Published: 29 August 2013

THE Central African Building Society has remained on a solid growth path after net surplus in the interim to June 2013 rose 11 percent to $10,6 million driven by increases in both interest and non-interest income.

"Net interest income increased by 29 percent in line with the increase in loans and advances. Net interest and non-interest income contributed 56 percent to the society's total income. Fee and commission income increased by 13 percent as a result of increased volume of transactions," said CABS.

Notably, fees and commissions were trending up in the interim contrary to other financial institutions that registered a decline in profitability in the interim period citing the central bank memorandum of understanding on charges.

The central bank last year signed an MoU with all banks for a cap on interest and charges after a public outcry about cost of banking and funding.

CABS said surplus in the interim period registered modest growth despite operating cost increasing by 33 percent due to the impact of various growth initiatives.

Total assets, CABS said, increased by 18 percent to $474,3 million during the six months period under review largely driven by a 21 percent growth in the deposit base to $83 million made up of 10 year mortgages for housing.

The society's loans and advances position increased from US$278 million in December 31 2012 to $268 million with the mortgage book rising from $96 million to $104 million in the six months period under review.
- herald

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